Coca-Cola HBC AG has agreed to acquire approximately 94.7% of Coca-Cola Bottling Company of Egypt SAE (CCBCE) for $427 million from its major shareholders, The Coca-Cola Co. (TCCC) and MAC Beverages Ltd. (MBL), along with certain other affiliates.
The deal will allow Coca-Cola HBC to access the second-largest, non-alcoholic, ready-to-drink market (NARTD) in Africa by volume. Nigeria and Egypt account for around 25% of the continent’s population.
It will also see the bottler leverage its proven route-to-market capabilities and 70 years of experience operating in emerging markets and increase penetration of The Coca-Cola Company’s brand portfolio and drive category leadership.
Zoran Bogdanovic, CEO of Coca-Cola HBC, said, “We are excited to welcome CCBCE to our group. We see great potential for this business to unlock considerable opportunities in the NARTD category in Egypt.
“With our best-in-class execution capabilities, commercial expertise and world-leading approach to sustainability and communities, we believe there is a significant opportunity to create value for all stakeholders. We appreciate the trust placed in us by The Coca-Cola Company and MBL, and look forward to becoming part of the Coca-Cola system in Egypt.”
The acquisition will also give Coca-Cola HBC exposure to high-growth geographies.
Brian Smith, president and chief operating officer of The Coca-Cola Company, said, “This transaction promises to strengthen our system in Egypt, where the expertise of Coca-Cola HBC will be a complement to the local knowledge and capabilities of CCBCE.
“This agreement represents an important development in the Coca-Cola system’s long-term commitment to the growth and development of this important market.”
Abdul Galil Besher, chairman of MAC Beverages Limited and CCBCE, commented, “As a leading anchor bottler of the Coca-Cola system, we believe that Coca-Cola HBC will accelerate CCBCE’s growth ambitions, by combining its expertise, breadth of knowledge, know-how and critical mass, with the company’s deep market knowledge developed over our multi-decade presence in Egypt.”
Founded in 1994, CCBCE is a joint venture company between The Coca-Cola Company and MAC Beverages Limited, and certain affiliated entities.
It manufactures non-alcoholic ready-to-drink beverages in Egypt and operates five bottling plants.
Its products include Coca-Cola, Sprite, Fanta, Schweppes, Schweppes gold, Crush, and Dasani water.
In the financial year ended 31 December 2020, CCBCE recorded a volume of approximately 275 million unit cases and net sales revenue of EGP7.4 billion (€400 million).